2015 (10) TMI 2864 - HC - VAT / Sales Tax

Taxability - whether the transaction providing set top box is taxable under the Karnataka Value Added Tax Act 2003? - HELD THAT - Apparently the assessment orders of even date 20th August 2015 Annexures-G G1 G2 and G3 for the assessment years 2010-11 to 2013-14 respectively do not make reference to either clause 1 (c) or clause 10 of the agreement and in the absence of such a consideration it cannot but be said that there is denial of justice. Suffice it to hold that the orders impugned of the assessing authority suffers from an error apparent on the face of record calling for interference. There is need to interfere with the orders of the assessing authority - Orders of assessment Annexure-G series are quashed and the proceeding remitted for consideration afresh after extending reasonable opportunity of hearing to the petitioner - Petition allowed.

Summary

The Karnataka High Court considered whether the transaction of providing a set-top box is taxable under the Karnataka Value Added Tax Act, 2003. The petitioner argued that the set-top box provided without consideration did not constitute a sale, while the Revenue contended that it should be taxed. The Court found that the assessment orders did not address key clauses of the agreement between the parties, leading to a denial of justice. Consequently, the Court held that the assessing authority's orders were flawed and quashed them, remitting the proceedings for fresh consideration with the opportunity for the petitioner to present additional evidence. The petitioner was directed to appear before the assessing officer for further proceedings.